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tv   The Situation Room With Wolf Blitzer  CNN  October 31, 2011 1:00pm-3:00pm PDT

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dementia. wrapper 50 cent's new book, he says from the days when he himself was the bully. "the situation room" begins right now with wolf blitzer. wolf? martin, thanks very much. happening now -- >> i have never sexually harassed anyone. >> the hard charging republican front-runner herman cain forced to stop and confront shocking allegationes from the past. what cain was accused of, what is means for his campaign. right now, we will hear from reporter ken vogual from politico. plus, an end to the mission, libya gets a new leader but is libya ready to stand on its own. i'm wolf blitzer, you're in "the
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situation room." herman cain has been flying high. a leader in the republican nomination. suddenly there are stunning allegations of sexual misconduct, threatening to potentially dramatically hurt his campaign. they date back to the 1990s, brought by two women who reportedly received a financial settlement. herm yan cane flatly denies the jl gagss. they were first reported in politico. he says the allegations are totally false but why was his campaign seemingly caught flat-fooded by something going back more than a decade. joe johns has been digging teeper into this for us. joe, what are you finding. >> herman cain says this is a witch hunt and there was an investigation in the restaurant sewation where he works in the 1990s. he says they determined there is no factual basis pour what he
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calls false allegations against him for sexual harassment. he says he see knows reason to many release any more information. he is not aware that association paid a financial settlement against the alleged cases, though he hopes they didn't pay a lot of money. in hindsight still, it took him a long time to come out and publicly admit that there had been a complaint, false or otherwise. >> it's never a good day for presidential campaign when the candidates name appears on the morning headlines in a story about alleged sexually inappropriate behavior. but from a campaign management standpoint, this may be a textbook example of how not to handle a crisis. politico, which broke the story, says there was plenty of warning. it first asked the campaign about this ten days before this confrontational interview outside cbs on sunday.
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and when the campaign's chief of staff was asked by politico's allegation, he seemed confused too, saying he was not fair aware of any. just hours before the candidates said he had been falsely accused, herman cain's words, of sexual harassment. rich galan says it sounds like there is plenty of time for the campaign to prepare for the story to hit. >> this is the kind of thing you see with campaigns that aren't very skilled and very experienced. every campaign will have a bad time. every campaign will have to explain something they didn't think they were going to have to explain. but you practice it, try to get ready no it, and when it does happen, if it does, you just execute on the plan. >> here is how one reporter at politico responded when we asked if the story came from another presidential campaign. >> my colleagues and i have been reporting the story for the last three weeks. during the course of that time we talked to dozens of current former employees, at the
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organization, current former board members at the organization, and a lot of folks in washington were close to the organization. so this has been an extensively reported story. thorough story. we have a half a dozen sources telling us claims against mr. cain. >> a huge question there really, where did the story come from? we heard from politico. they got a tip on this, not clear at all, where the tip came from. herman cain says there is an investigation to this in the '90s. he said they determined there was no factual basis whatsoever for claims made against him. maybe he thinks nothing else needs to be released on it. the problem for the campaign is that when you have a story like this, people want to know more. their strategy has been to try to turn it into a media story accusing the media of drumming up false allegations, in an attempt to discredit the candidate, which could work of course, unless new details start trickling in to keep the story
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alive. wolf? >> we will play his entire statement he made at the national press club later this hour. our viewers will be interested in that. thanks very much. but let's dig deeper right now. more on the allegations against herman cain. how they came to light. what's going on. the chief investigator correspondent for politico, part of the team that worked on this story three weeks, you have been working on this story. ten days ago you went to the herman cain campaign and said what? >> we named one of the women who made the allegations. initially their response was to ignore us, then to say they were unfamiliar with them. then they sifted and said they were vaguely aware of the allegations but said he was not accused of sexual harassment. today of course he is admitting that he was the subject of a sexual harassment allegation but he says they were false. he says there was an
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investigation into it that cleared him. we are reporting now that there was no such investigation or if this was, if t was very narrowly held, within the top exec tis of the restaurant association because neither the director of human rer sources nor the officers of board of directors knew anything about the allegations, let alone a settlement when we talked to him. >> so basically what he said today, there was an investigation, when you say there was no investigation or it was a very modest investigation, you say he is misleading this on us. >> if he was saying there is a comprehensive investigation, i don't know his exact words, but something to that effect. we talked to all of the foekts involved in such an investigation and most of them never heard anything of the sort. >> this is what you write among other things, because i would like you to elaborate. the women complain of sexually suggestive behavior by cain that made them angry and uncomfortable. there were also descriptions of
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physical gestures not overtly sexual by that made women who experienced or witnessed them uncomfortable. did you get more specifics? you have more details of what this is all about? >> in fact, i was talking to a source today that said one of the women told her that herman cain invited her up to his hotel room to a national association event and made sexually explicit suggestions to her that made her feel uncomfortable. that is an example of the type of things we are talking about here. >> this is a woman who worked for him? >> that's correct. she is a woman who worked for him. she felt threatened. as if her job was at risk and she was very upset. the source who told this to me. who she told it to, said this is a very exposed young whom nonetheless was extremely angry that she was put into this situation by herm yan cane. >> did you and your colleagues speak to these two women?
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>> some of the colleagues did the reporting and talked to either of the women or representatives of the women or folks to whom they directly related -- >> but your colleagues did speak to these women personally. >> at least one of them. >> at least one of them. the other didn't want to say anything. they signed confidentiality agreements to not disclose anything in for a specific sum, five figures, 50,000 or do you know how much they received? >> more than 10,000 and less than 100,000 and included in those were nondisclosure agreement. that is part of the sensitivity here. part of the reason we are not naming these people. >> were they not allowed to speak to friends or family about it either or juf the public. >> not familiar with the precise language, we did have one of my colleagues who did review one of vees documents, i can't speak to directly what this particular one said but particularly the way a nondisclosure agreement would work is folks outside. inner circle. >> when i read the report, you
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posted it last night on politico, my first suspicion as a long time political reporter in washington is the initial tip from politico may have come from opposition research from some of the political rivals. without getting into the specifics of who tipped you off, was it another campaign? >> we got a tip from someone outside. we managed to corroborate all of the details an more. we have to be clear here that this tip was a general tip. and we through within dogged reported, talked to dozens of people, on the restaurant association, on the board, people who knew the allegations and reported on the case -- >> you are a good reporter. if it came from a political campaign were when you say outside, maybe someone from the nationality restaurant association or whatever, you understand the interest where you got the original tip to check this out. >> certainly. and i would say, what's more
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significant are the facts of the situation. we independently corroborated and verified that. >> you don't want to say whether or not opposition research or another campaign provide the initial tip? >> that's correct. we don't think that's -- that original source is as important as the actual information -- >> i know the actual information is important but the original source is important as well if we look at the whole political environment, what is going on among republicans. you know we have covered a lot of campaigns. opposition research always provides reporters, journalists, you go check out this, go check out that, you may find something good. i'm just curious because it is part of the presidential campaign right now whether another campaign helped you begin this reporting. >> i mean, politics are politics. as you said. and certainly there are people digging up research. i'm just not going to do flig that would identify that would point towards the identity of the original source. >> by the way, what cain did say at the national press club, it
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was -- and i'm paraphrasing, but he said concluded after a report thorough investigation that there was no sexual harassment. that's what his explanation was today. a thorough investigation. what you are saying is that is not true. there is no thorough investigation. >> it is certainly possible it could have been thorough but very narrowly held. we talk to some of the people who would lonl logically be involved, including the director of human resources, who was named in that investigation and this person name herd by position, was involved in this. we talked to her and she said, no, she never heard anything about it. >> is it possible, that he didn't know if there was a financial settlement. he said he didn't know. if there was a settlement with the two women and he didn't know that, is that possible based on your reporting, what you are seeing? would he know about a five-figure financial statement to these women? >> we didn't report explicitly
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on that. i assume it could be possible. in fact he didn't know of the settlement. but clearly he knew of the allegations. he said there was an investigation of them and this is something that it took him a while to say that initially when we confronted him with these allegations, and with a specific name of a woman who made these allegations, he pretty much denied all knowledge. now you have him admitting knowledge but saying he was exonerated in a thorough investigation. >> how long did he continue working at this organization after the settlement. >> it is unclear. however he did leave early. he signed for for three-year term p november of 1999. 1996. he left in late june of 1999. so he left a few months before his three-year term was up. we talked to a number of board members including those on the executive committee at the time of his departure. and they are unclear as to why he left. they said that in fact his
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resignation came to them. they accepted. they thought it was for personal reasons but didn't have any indication as to what they were. >> that is not unusual for someone to leave a few months before the end of a contract. >> it is possible that, particularly if he was going into something specific. in this case though, the ambiguity and sort of the lack of clarity about his plans and why he was leaving, was something that was in fact notable to some of the board members who nonetheless did not know anything about these settlements until we told them about it. >> ken vogel, i know you will do more reporting on this. thanks for coming in. >> my pleasure. >> we will have more on this story, including the entire statement that herman cain delivered describing his store pr prip. let's check in with jack cafferty. as we say, jack, the world of presidential politics, never dull. >> well, if you assume that this came from somebody else in the presidential political arena, it
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may not have, it may have come from someone else. >> and as you just heard from ken, he is not telling us. >> if you were holding those cases, you wouldn't tip your hand either. it is a good story and they did a good job reporting it. there is probably more to come in the days and weeks ahead. in the meantime, smokers and fat people can pay more for their health insurance. reuters reports there is unhealthy employees, translation, people who can't quick kwit quit smoking, lose weigh or lower cholesterol. employers have been trying to get workers to help their health, bring down soaring insurance costs. there are classes to stop smoking. but not enough employees signed up for these and improve their health. so instead, companies are now going to start making these employees pay more. one recent survey shows the use of penalties is expected to climb next year to include
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almost 40% of large and medium sides companies. that's up from 19% this year, only 8 percent in 2009. penalties include higher insurance premiums and deductibles. and those engaged in risky health behavior like smoking. wal-mart insures more than 1 million people. they say smokers consume about 25% more healthcare services than nonsmokers do. starting next week, wal-mart will charge smokers higher premiums along with a free program to help them stop smoking. . anyway, here is the question. should smokers and fat folks pay more for healthcare or health insurance? go to post a comment on my blog or to
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to the situation's room facebook page. >> thank you. other news we are following, nato ends its official stay in libya. allegations against herman cain that go back more than a decade. why was his campaign seemingly caught off guard. much more on this story coming up this hour. yeah, i'm married. does it matter?
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less than two hours from now, nato will officially end its mission in libya. nato took over the air campaign seven months ago. it was aimed at protecting libyan civilians and with almost 10,000 strike missions alone, it certainly helped speed the end of the gadhafi regime. libya's national transitional console today elected its
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interim prime minister. an engineer who lived in the united states for more than three decades, but libya still faces extraordinary challenges. let's go to matthew chance, he is joining us from tripoli. matthew, are the allies ending their military mission too soon? what are officials in libya and other experts telling you? >> well, if you spoke to nato, as i've been doing today, what they say is they are ending it at exactly the right time. they say they achieved all of the objectives and fulfilled the u.n. mandate to protect civilians they say, to the letter. when you speak it libyan officials, you get 5 slightly different picture. they are concerned about the security threat facing libya. they are concerned that gadhafi corally themselves, and muster and pose a security challenge in the future. but none of this is convincing nato. they are determined in about 2
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hours 40 minutes from now, their mission in the skies over libya will come 20 an end. earlier i sat down with the secretary-general of nato. i flew with him from nato head quart into tripoli. take a listen about what he had to say. >> mandated by the security council to protect civilians. we have prevented -- we have satisfied countless lives. we have fully -- [ inaudible ] that was our mission and we have done what we promised to do. >> so as far as nato is concerned, then, wolf, mission accompliced. but here on the ground in libya, it still could go in many directions. lots of questiones about what kind of country libya will emerge. >> i heard the soundbite with nato secretary general but all that extra sound, i couldn't
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understand what he was saying. what exactly did he say to you that really jumped out? >> basically, he has been congratulating his own organization, nato, for a which he says has been done extremely well. they are calling it the most successful mission in history. they are leaving at midnight local time, something they haven't been able to do in afghanistan and iraq. they also down played, even denied, that nato caused any civilian casualties in libya as a direct result of its bombardance. remember there were thousands of airstrikes, as you mentioned, on the country. they are say nothing civilian casualties were caused as a direct result they can confirm from the nato bombardment. they are putting the most positive spin on this possible. >> did they say that nato allies
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would ask the new libyan government to reimburse nate o yo for the 1 or $2 billion nato spent operating this campaign in libya the last few months? there have been hints from the libyans they might be willing to do so. they an oil rich exporting country. they have money. are they ready to reimburse nato allies? did you get into that with russ rasmussen. >> i didn't. that is something specifically that would have been addressed today when the secretary-general came. but i have no doubt, wolf, this is being discussed behind closed doors. certainly libya has the potential to pay back a lost money, whether or not a deal is in the offing or not, i just can't say. but i can imagine given the economic tremors in the world, in europe, the united states as well, that many european countries, may be looking to a
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relatively rich libya, to pay back some of the money they spent liberating the country. >> no doubt about that. the u.s. alone spent about $1 billion and u.s. still has frozen, i think, about $30 billion in libyan assets. many members of congress suggested deduct some of that money and reimburse u.s. taxpayers. but i'm sure we will get more on that in coming weeks and months. thanks, matthew. thanks, very much. presidential candidate herman cain in a potentially devastating scandal. >> i have never sexually harassed anyone. [ horn honks ]
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story. herman cain forced to respond to a report he sexually harassed two women while head of the national restaurant association back in the 1990s. listen to this. >> delighted to clear the air. [ applause ] >> number one, in all of my over 40 years of business experience, running businesses and corporations, i have never sexually harassed begin. number two, while at the restaurant association, i was accused of sexual harassment. falsely accused, i might add. i was falsely accused of sex sexual harassment, and as leader of the organization, i recused myself and allowed my general council and my human resource officer, to deal with the
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situation. and it was concluded after a thorough investigation, that it had no basis. as for, as a settlement, i am unaware of any sort of settlement. i hope it wasn't for much, because i didn't do anything. but the fact of the matter is, i'm not aware of a settlement that came out of that accusation. per the article, two anonymous sources claiming sexual harassment, we're not going to chase anonymous sources. when there's no basis for the accusation. i would draw your attention to the three people mentioned at the end of the article that were at the rest raupt association as past chairman, chairman and incoming chairman of the board who would have known about this if it had turned out in fact to be a charge with some validity.
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but it was not. and so, as a result, i have never sexually harassed anyone and those accusations are totally false. >> so a statement from herman cain at the national press club in earlier there the day. joining us, donna brazile and david frum of the frum for ten days his campaign has been alerted that this was on the way. they didn't respond, really. they could have gotten ahead of this story instead of trying to catch up. what's going on here? >> the amateurishness of the cain organization should not lead it a conclusion that cain did something very bad. he may be a victim of the fact that he is not running a normal presidential campaign. he is not ready for prime time. that doesn't make him guilty of anything serious. it is important to understand
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that companies settle claims all the time for reasons other than thinking they did something wrong. especially with the amounts of money here, that is said to be in the five figures. so i did research today. in the world of sexual harassment litigation, those are not big figures. >> as ken vogel said, from 10,000 to a hundred,000. they might have done this just to move along. >> anyone with sexual harassment, is a very serious charge, it is a serious incident. it is discrimination in the workplace. it makes people very uncomfortable. it is a form of bullying and we should take the charges of allegations seriously. that's why i think the cain campaign should have been prepared for it. they should have understood the seriousness of the allegations. it is not just one woman, it is two women. it is now a drip, drip, drip. i don't think it'll go away because i don't think mr. cain officially answered the
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question. he is trying to put it behind him after with answering questions. >> the national restaurant association, says as a matter of policy, they don't talk about issues in the past which is standard boiler plate for most associations. >> but will have to give a fuller answer than he has given. sexually harassment coveres a wide range of different behaviors. as we remember from the thomas case, that's what put -- >> clarence thomas. >> clarence thomas case. before the thomas case there were seven or 8,000 sexual harassment case easier according to the eoc. afterwards is jumped to over 15,000. there a big change in consciousness. it covers a lot of territory. from an untoward remark if a physical attack. people will feel differently about this -- >> the difference is anita hill went public with accusations against thomas where as these
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two women are staying silent, honoring their confidentiality agreements they made with the organization thz that's true. as you recall, the senate first ignored anita hill and that led to many women on capitol hill watching, members of congress, marching across the tarmac. of course we all know what happened, when anita hill was finally able to testify. i still believe he hasn't fully answered the questions. i think he has to do a better job by answering these allegations. otherwise it'll distract from his campaign. he is running, not because of his experience in government, but in large part because of his character. he is a businessman. this is a problem he needs to talk about. >> he is doing amazingly well for someone with no real strong political experience. look at des moines register poll that came out over the weekend in iowa. cain is at 23% among likely republicans. caucus goers. romney statistically tied 22%. ron paul 12.
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you see, and in the national polls among republicans, he is doing very well indeed. here is the question to you. how much, this early stage in this, do you think this could hurt him? >> if it turns out to be an allegation with substantial bite, of course it could hurt. especially because he is running as a candidate of faith and family. if it turns out that what happened here was he made a rude joke or said something stupid, people took afence and in order to make it go away, his organization wrote a relatively small check, then it won't mean anything at all. >> this is why women get upset. just a rude joke. no, it should have been investigated. he should be more north coming. he cannot clearly just blame the media and try not to answer these allegations. >> i'm not a herman cain fan.
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but we want to talk about what allegations are. there is fact of settlement. companies settle all the time, including when nothing happen pepd because the case is cheaper to settle. we are learn what allegations were. as of yet, there are no allegations, only the fact of seat elment. >> well, first they deny it, then say there were allegations. so drip, drip, drip. >> if there was a slip and fall at the company, that would be a serious thing if the company were to be to blame. >> well move on, but don't go away. ? his remarks, we did confirm there was al allegation of sexual harassment levelled against him. he says there was a thorough investigation that cleared him. politico says maybe not such a thorough investigation, though there was a sell settlement. he said he didn't know of a settlement. stand by, we have a lot more
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discuss, including rick perry. he was poke fun at president bomb for using a teleprompter. he uses one as well. he tried not to use one and doesn't do all that well. we will play it for you and discuss more in our strategy session when we come back. what do you got? restrained driver...
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in joint comfort within 7 days. osteo bi-flex, my knees thank you. [ male announcer ] osteo bi-flex. the #1 doctor and pharmacist recommended brand. rick perry has been taking boeks at president obama for reading from a teleprompter but we will check how the republican candidate fairs himself with and without one. take a look at this. >> if you're looking for a slick politician or a guy with great teleprompter skills, we already have that. and he is destroying our economy. i'm a doer, not a talker. in texas we created 40% of the new jobs in the entire country since june 2009. we cut a record 15 billion from our state budget. now they say we can't do that in washington. well, they're wrong and they need to go. >> rick perry's new ad.
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let's continue with donna and david. anything wrong with the politician, for example, using a teleprompter. we know president obama does it very well. >> during financial crisis when an unfortunate stray remark can be heard by markets, it may be a very good idea. president's words carry very powerfully. there is a reason for caution. in this case, this particular attack is a weird one. because if the suggestion is, well barack obama, he would be completely tongue-tied, everyone knows he can't talk, we all know he can talk. no one gain says that. so if he can talk so well, why mock him for talking carefully. >> when he gave a speech in pittsburgh the other day, he was reading from a teleprompter. >> i don't have a problem with that. i typically i can read from one, ifity's close up. if not, i go by the cuff. >> i use a teleprompter every y everyday. >> i don't have a problem with it. i don't think rick perry has anything to say. i have watched his campaign for the last month.
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it looks like perry is struggling to get a message with voters and he is having a stroug el with his own words, not with president obama. >> he is getting a there of buzz. because the other day he was speaking without a teleprompter, off the cuff. let me play an excerpt. >> this is such a cool state. live fre or die. you got to love that, right? everybody has a sleg slogan, right? mine is kucut, balance and grow. it doesn't force the granite state to expand your foo print. you know what i mean. like 9%. my plan is really pretty simple. it does deductions for the mortgage, deduction for charitable. yeah. you keep that in there. and your state and local taxes are in there. put those on, 12,500, for every
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dependent that you have. it is pretty easy math. subtract it. send it in. it's he a awesome. >> is it fair or unfair to look at that and say, that looks a little, i guess, strain nl. >> does look odd. you catch him in a relaxed moment. but i think with his cann canaa and datecy will come on. they look better because they do budgeting over two-year cycle not one-year cycle. a lot of jobs were government johns and the rest were taken by aliens, half of them illegal. that story doesn't look so compelling. the simple solution to the nation's problems he produces, his numbers don't work. the idea that, through expanded drilling can you create millions and millions or 1.2 million job, over 20 years. that figure doesn't -- >> you saw that campaign
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commercial where he says, 40% of all the jobs in the united states were created in texas over the past couple years on my watch. that's a pretty effective slogan. >> david mentioned the fact that, look, stks blessed with a lot of oil. some people in louisiana think they have been taking some of our natural resources. but the truth of the matter is that texas has a lot of resources. that's one of the reasons why they created so many minimum wage jobs. is that the jobs we want to see created in the future? not really. wasn't to see jobs in the middle class pay for their bills, et cetera. but i have to say, watching that clip, i thought i was watching saturday night live. >> it was a little painful watching that clip. and the comedians will have fun with that. if you want to be president of the united states, whether you are herman cain, rick perry or mitt romney, they will be skrut
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scrutinized. >> people may say wib don't like the way that guy moves his shoulders or moves his head back and forth. can you be a very, very successful president whether you hold your shoulders one way or the other. our economic problems are so veer, things are so out of line, and it is so important to find the right answer that those ticks of verbal, mannerisms, physical ticks, i think, let's leave them to one side. >> i think you make a good point. we should focus really, there are major economic issues on the table, who could do a better job with the economy, helping people who are losing their homes, national security, some of the side issues. >> it is not the way he looks or how he holds his head or the jokes he makes. really, what is his plan for the future. what is his plan to get the private sector off the side lines? >> he has been outlining. his energy plan, tax plan. he is outlining plans. >> we have looked at those
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plans. i think some come away saying, it is drill, baby drill. i think that's the problem rick perry is having, he doesn't have anything to say. >> you are writing a column. give us the gist of it. it is a good one. entitled "how the tea party do drive the gop to disaster." what are you talking about? >> i laid out four topics. what happens if you nominate a tea party candidate and the candidate loses. what happens if you nominate a candidate like mitt romney and he wins. the last hypothesis wlab happens if you do nominate a candidate and that person wins because of the depth of the economic crisis, that would be a very, very dangerous thing. because the country does not need tighter credit. the country does not need a premature focus on the deficit. this is the large balanced approach that mitt romney laid out. >> do you think there is a
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candidate among republicans who could win? >> i think rick perry is a very undervalued stock right now. i think as there is a lot of resistance to mitt romney. as the people who don't want him, look at their field of choices, rick perry is the close that makes the most sense, if that's your point of view. he is a governor. he has won elections. he has held public office. and i think people will tend to converge on him as alternative. and then, it becomes -- if that happens early, he could beat romney. >> i wrote on our situation room blog today, did you see it? >> yes. >> the democrats are focusing their attention on mitt romney, david, the president's advisor yesterday, saying he has no core. basically ignoring all of the other republican candidates. they are going simply after mitt romney. you noticed that. >> mitt romney is a target for democrats. it is true he had four positions on one issue and he will change it when the weather changes. if herman cain can survive this round of scrutiny, i think that
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cain will be a viable candidate. >> president obama orders the fda to do something about prescription drug shortages and to do it now. stand by for details. we will also tell what you today's executive order could mean for you. that and today's other top stories, that's coming up. one of the world's most dangerous and deadly drives. the 24-hour trek from pakistan to afghanistan. we are going along for the ride. t are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. delivering mail, medicine and packages.
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yet they're closing thousands of offices, slashing service, and want to lay off over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains 5 billion a year from post-office revenue while the postal service is forced to overpay billions more into federal accounts. congress created this problem, and congress can fix it.
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other top stories in the situation room right now, mary, what's going on? president obama's tackling prescription drug shortage is headed today by issuing just a few -- [ inaudible ] taking action by reporting further drug shortages and speeding up regulatory reviews. so far this year, nearly 108 life-saving drugs have been declare. meantiming with the justice department will be tasked with examining possible price gouging. nearly 2 million people are still without power this hour after a freak snowstorm buried parts of the northeast over the
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weekend. crews are scrambling right now to get power restored to customers. authorities in massachusetts say, it could be thursday before everyone has electricity again. at least ten deaths are blamed on the storm. u.s. stocks fell more than 1% as the dollar shot up against the yen. the dow tumbled 208 points. the sell off comes on the final day of what is the best month for the stomarket in years. markets are poise to close out a record month with the dow open in october. cafferty files up next. then in the next hour, russian spies including anna chapman cost in the act. new video released by the fbi. causing foreign agents on the hunt for america's top secrets. no problem. you want to save money on rv insurance? no problem. you want to save money on motorcycle insurance? no problem.
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jack's back with the cafferty file wp jack? >> the question this hour is, should smokers and fat people pay more for their health insurance? a lost companies will start penalizing those groups of people next year. matt writes within yes, the base ek concept of insurance is to spread risk. sorry but if you are a heavy or use tobacco you will have a
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greater risk of needing insurance for medical costs. why should someone living a healthy lifestyle pay for someone who has chosen not to. if you don't like it, do something about it. quit smoking, start working out p. jeannie writes, what about people who drink alcohol on eat meat or are too skinny. jack writes back, you just described 50% of america. good luck. if you drive a more expensive car you may pour for insurance. if your home is in an earthquake or hurricane zone you pay more. smokers along with the tobacco industry should pay more to for healthcare costs for that bad habit. >> how good b stupid people, they are always doing dumb things, and getting themselves hurt. how about women who keep spitting out babies.
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you head down a slippery slope. jack as a former smoker, i firmly believe that people who engage in unael think and unsafe activities should pay for. jack, as a nonsmoking fat ass, the answer is no. you can see more on the cafferty file or on the situation's facebook page. wolf. thank you. at the top of the hour, herman cain says there is witch hunt against him. we will talk about his consequences for his presidential campaign. plus trapped without water or working bathrooms. a hundred passengers get stranded on a plane for almost eight hours.
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aspercreme breaks the grip, with maximum-strength medicine and no embarrassing odor. break the grip of pain with aspercreme. let's get to this hour's hot shots. in thailand a child sits on a bench surround bid flood water. the country is experiencing the worse the flooding in over 50 years. in spain, two women walk past tomb stones on the eve of all saints day. in germany, a foggy autumn day does not stop man from rowing on
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a lake. in new zealand, cyclists participate in day one of the 2011 day much of cycling. herman cain is denying he ever sexually harassed anyone. but celeste unanswered questions about a reported settlement with two accusers in the 1909s. we are digging deeper on the legal side weighing on herman cain's presidential bid. plus, jet blue passengers vent anger about being trapped on the tarmac for nearly eight hours. what happened to the massive fines that were supposed to prevent this kind of nightmare? watch russian spies in action, working to steal america's top secrets? stand by for some haunting glimpses into a notorious espionage ring. we want to welcome viewers in united states and around the world. i'm wolf blitzer, you're in "the
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situation room." right now, herman cain may be hoping that four swords spare his presidential campaign from serious damage. the republican declaring today, i was falsely accused. cain is responding to past allegations of sexual harassment while he was head of the national restaurant association, a lobbying group here in washington. that response has been evolving since the story broke yesterday. our own brian todd caught up with herman cain here in washington. how did that go, brian? >> wolf, there were some questions that herman cain would not answer to all of this. but reports of two unnamed women that cn sexually harassed them in the 1909s, cain said it never happened. perhaps his tough et day on the campaign trail, herman cain first brushes off the
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allegatio allegations. >> in a more controlled setting at national press club, after at one point someone there is enlisted to block camera views of him, cain admits there were claims against him. >> while at the restaurant association, i was accused of sexual harassment. falsely accused, i might add. ways falsely accused of sexual harassment and when charges were brought as heard of the organization, i recused myself and allowed my general council and my human resource officer to deal with the situation. and it was concluded after a thorough investigation that had no basis. >> cain said he never sexually harassed anyone in over 40 years of business. there is a report in politico that two employees of the
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national restaurant association complained of inappropriate behavior pr cain when he led that group in the 1990s. politico reports the women, not named, left that organization after receiving five-figure separation deals. when presd, both cain and his chief of staff said they weren't aware of the deals. >> if the accusations are false, why were there settlements? >> you have to ask the national restaurant association. >> the restaurant association would only say theis dents took place nearly 15 years and go and we don't comment on personnel issues relating to current or former employees. politico reports the women allege having conversationes with cain filled with innuendo, personal questions after sexual nature, physical gestures that made women uncomfortable and -- >> one of the women at one point was asked by mr. cain 20 come to his hotel room and she complained, the woman did. >> i never sexually harassed anyone and those accusations are totally false.
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>> when asked workplace attorney deborah cats about kain's claim he knew nothing of separation packages for the women. >> given the position he held as ceo and on the board, it seems highly unlikely that any payment would be made in settlement of these allegations and he would not be aware of it. >> politico reports the women in question signed a agreements that barred them from speaking pub publicly about their departures. cain could release them from confidentiality agreements. when i asked him if he would do that, he did not answer. we called about a dozen people with the restaurant association at that time, the only two that would go on the record who worked under cain on that group says cain was always respectful, went out of his way to make people comfortable and caldera said he never experienced anything that has been said of cain. >> there is an explanation late this afternoon. >> the washington examiner is
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reporting a taped appearance on fox where cain says he does remember one woman making allegation against him. cain says, she was in my office one day and i made a gesture, i said, you are the same height as my wife and i brought my hand up to my chin. my wife comes up to my chin. cain says she put this in a complaint. >> thanks very much. let's talk more about what is going on in the story. the possible political consequences for herman cain's campaign. we are joined by gloria and our seen yar legal analyst, jeffrey. globa, did herm yan cane put this who issue behind him? >> no, not at all. he answered the question, he said, you know, he never sexually harassed anyone. he told us that he recused himself from this case, but that he was told by officials of the group that there was no basis for these charges.
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but what he did not explain is that how he did not know that the women actually left the restaurant association. what he could do is say to the restaurant association, as chief of staff has said, go check with the restaurant association. well, why doesn't he just say to the restaurant association, you can release my records and my affidavits in this matter and i will say i don't have any confidentiality, expunge the women's names if you want. but why not make those records available. until he does that, i think there will be more questions that come out. >> let me ask jeffrey toobin if that is, you know, legal. is that appropriate? could he just ask the national restaurant association, a lbying group here in washington, to release all documents? they said their policy is, they don't discuss personnel matters,
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like most companies don't discuss personnel matters. >> but he could certainly wave his confidentiality. he could wave any documents that he signed. >> but jeffrey, who says the women want all of that information to come out right now? >> not necessarily -- their names could be excluded. there are all sorts of ways you could disclose more information here consistent with both normal corporate policies and protecting these women's privacy. but it is important to remember, there are only two solid facts we know. undisputed fablgts facts. as cain said today, there was a sexual harassment claim against him. the other fact is that some money was paid to these women as politico reported yesterday. why? how much? >> right. >> it raises all sorts of questions that if you are running for president of the united states, you absolutely have to answer. >> but let me just point out, jeffrey, there are companies where there is harassment, sexual harassment or other
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harassment and a company pays money. not because they think there is guilt, but to get it to go away so they don't have to smend spend money for legal fees. they think that is more appropriate than letting this drag on in court or whatever. >> that is absolutely right. that is a possibility that this happened in this case, particularly since in careness to cain, politico pointed out that the settlements were only in five figures, which is not a lot of money for sexual what is raiment case. but you have to answer the question. >> right. >> imagine if mitt romney said said well, there were two sexual harassment at bane capitol but they went away and we aren't talking about them. >> if it was just go-away money and no have a lid it to the claims, which may be the case, why wouldn't herman cain go to the restaurantes so yal associa say, release the documents so i can clear my name and get on
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with the campaign. >> how much damage to you think is sustained on this campaign? >> i think clearly this is a problem for herman cain. er with not talking as much about 9-9-9 as we are about this today. other candidates will back off for a while. they will let this story play itself out. but as you know, this is like a spool of thread. it starts unraveling and if you leave questions open, more questions will be asked. and i think that's the problem herman cain has now. not only as candidate but also his campaign has to figure out a way to control the damage and in my experience, covering political races, the best way to do that is to answer questions. >> jeffrey, does it matter who tipped off politico originally about the allegations. whether it came from someone at the national restaurant association. someone else outside here in washington. or whether it came from one of those other republican presidential campaigns? >> i don't think it matters, a
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bit. herman cain can claim this is some sort of conspiracy and he is targeted. but you know, welcome to tbig leagues pal. this guy is running for president. if you have something in your history, that is embarrassing, even if it is not criminal or that significant, it'll come out. you better tell the story or someone else will tell the story. that's what is happening now. he just has it figure out how to tell the truth here. and be open about it. because it is just not going to go way. >> especially if you are front-runner running for the presidential nomination. >> right. >> as ian says, there is a bull's eye. >> he is vetted before our very eye eyes. that's what happened. >> all right, gloria, jeffrey, thanks very much. >> much more on this story in the next half hour. also, ghosts of spying in 21st century. you will see remarkable video of russian agents in action here in the united states.
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remember an cna chapman? we will show what you is going on. and mitt romney is who obama's team fears most. stand by for that. no food, no bathroom, no patience. jet blue passengers share their nate meyer. welcome to idaho, where they grow america's favorite potatoes. everyone knows idaho potatoes taste great. but did you know they're good for you too? they're high in vitamins and potassium. and idaho potatoes are now certified to carry the heart checkmark from the american heart association for foods low in saturated fat and cholesterol. so they're good for my family, and for yours. heart smart idaho potatoes. always look for the grown in idaho seal. ♪ ♪
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check in with jack cafferty. jack? >> the great depression may have ended more than two years ago but millions of americans aren't feeling much relief. there is sobering economic statistics that explain why this achingly slow recovery feels more like a recession. for starters, people are making less money. the income of the median household which fell about 3% during recession declined another 7% since the reaction ended. it is estimated the income of the typical american household adjusted for inexplanation fell well below the january 2000
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level. the national unemployment is stubbornly below 9%. and having an education doesn't necessarily help that much either. research shows that since 2009, median incomes of households led by house ohio school graduates, those with two-year degrees and those with bachelor degrees all fell. as for the housing market, it still hasn't rebounded. one in five mortgage holders has a loan bigger than value of their home. and a new report out now suggests the housing market has even further to fall with home prices headed for a triple dip. it says by next june, home values will have dropped to a new low of 35% below the peak reached in early 2006. one recent poll shows one if five americans think the economy will improve in the next 12 months. here is the question, does the weak recovery feel more like recession to you? go or go
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facebook on the situation room page. thank you. horror and outrage, not only from passengers, after a jet blue airplane was stranded on the tarmac for hours and hours in the wake of an october snowstorm here in the united states. our own mary snow is working the story for us. as more on the fall out, the latest. what is the fallout, mary? >> some of the fallout is that department of transportation consumer protection division is investigating jet blue. just listen to the pilot's voice, you will get a sense of his frustration, trying to guess passengers off the plane. >> stranded on the tarmac at bradley international in hartford, connecticut for about eight hours, a jet blue pilot radios the tower saturday night clearly frustrated. >> we can't seem to get any help
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from my own company. i apologize for this. but is there any way can you get a tug and tow bar to us and get us towed somewhere to a gate or something? i don't care. take us anywhere. >> flight 504 left ft. lauderdale shortly after 10 a.m. bound for newark, new jersey. but snowy conditions diverted it to hartford. where the plane sat. jimmy brown, wlos paralyzed was on the flight with his wife, fran seen. they told cnn affiliate new york one, there was little information and rising tension. >> few people were blowing up, yelling and standing up. a lot of people getting irritated. >> by 6, 7:00, there was no more food at all. no potato chips, no snack boxes. barely any water. the bathroom stopped working. it got pretty crazy. >> my priority right now is a tug and tow bar. just give me a welding shop, i will be willing to make one myself. >> around 9 p.m., passengers
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were finally let off. but why did it take so long? jet blue declined an interview sight ongoing investigation. it also side the number of flights diverted saying, obviously we would have preferred deplaning much sooner than we did. adding the airport experienced intermittent power outages which made refueling and jet bridge deplaning difficult. bradley international said in a statement, the airport took approximately 23 diversions on saturday and our resources were stretched to the limit. former transportation department inspector general mary says it is the airline's responsibility to provide extra personnel. and she says, even though a new rule is supposed to prevent passengers from being stuck on the tarmac for more than three hours, fines are mineral. >> the airlines are not fined because the department of transportation and federal aviation administration try it help the airlines and view themselves in partnership with the airlines. they like to look after their business and look after the bottom line.
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>> now the department of transportation disputes that, noting its issued numerous fines for violation of airline consumables. as for the three-hour rule, it says since it went into effect in april of 2010, extended delays have been virtually eliminated and says no airline has been fined. but the department of transportation points out that maximum tarmac delay rule carries penalty of 27,500 per passengers. in this case, that would amount to about $3.5 million. wolf? >> any of that money go to passengers or just to the u.s. government? >> that money goes to the u.s. government. we were talking to mary earlier today, she said that perhaps if the rules were changed, if that money went to passengers, perhaps that would be more incentive for airlines ton break that rule. >> yeah. that sounds like a good rule to get at least some of that money to the people who were victimized in this kind of situation. thanks, mary. thanks very much. the gop race for the white house is far from being decided
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officially ending. in a little while we are watching what is going on closely. mary snow is looking at that. some other top stories in "the situation room," what do we have mary? >> despite end of formal military operations were they will continue monitoring libya from the skies. the u.s. is warning libya it must act swiftly to form an inclusive new government. the close of the seven-month
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nato bomb campaign comes almost two weeks since capture and killing of long time dictator gadhafi. the u.n. agency focused onnedation and science, off the organization voted to improve the controversial palestinian bid for full membership, a move one u.s. official calls damaging. the vote is separate from the palestinian membership bid in the united nations and first on the matter for a part of the. president obama has a clean bill. health. the white house has just released the report from the president's second periodic fiscal nexamination last week. all data indicate he will remain fit for the duration of his presidency. get this, the report also says the president is tobacco free. and meet the petman. he is to test chemical protective clothing. can you see him walking on a
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treadmill, bending over and doing push-ups. the company says petman is designed to mimic human move many while being exposed to chemical warfare agents. he is reportedly 180 pounds and almost 6 feet tall. wolf? >> pretty good. thanks very much, mary, no that are. it may be the last thing you would expect herm yan cane to do today today. plus a russian spy drop in progress. the kind of thing you see in thrillers all the time and mauvies. but guess what? this time it is very real. we are tracking terrorists responsible for the worst loss of nato lives in the afghan capital in the decade of war. >> can see the shear force of explosion. but the key thing about it, its precision. the suicide bomber knew exactly when to strike and where. from idea to research to trade. including financials, indicators
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herman cain has been saying for weeks he has a bull's eye on his back because of a surge in the republican presidential polls. but he hasn't seen anything like the fire storm he is experiencing right now. the former pizza executive is denying past allegations of sexual misconduct back in the 1990s. listen to some of herman cain's remarks at the national press club in washington. >> i would be delighted to clear the air. [ applause ] number one, in all of my over 40 years of business experience, running businesses and
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corporations, i have never sexually harassed anyone. number two, while at the restaurant association, i was accused of sexual harassment. falsely accused, i might add. i falsely accused of sexual harassment. and when charges were brought, as leader of the organization, i recused myself and allowed my general council and my human resource officer to deal with the situation. and it was concluded after a thorough investigation that it had no basis. >> let's bring in senior political analyst david goergan.
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here are the ak ruizatiaccusati about them. looks like we are learning how not to operate during damage control operation under way. >> you are absolutely right, wolf. he has excited a lot of people. he has ignited this debate over flat taxes. so a lot of republicans like that and they support him. but the one thing he did not do is clear the air. he says that's what he was going to do but i'm afraid it didn't quite -- >> what does he still need to do, david? >> wolf, i think what centrally at issue here in the beginning is whether the national restaurant association paid women, settlement fees, to basically leave organization and keep their mouth shut. and politico, which has, as you know, has established a reputation of being a fair-mined organization, they put a lot of time into reporting on this, says at least one of the settlements was in five figures.
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that's a fair amount of money to pay to someone who has false allegation. so the question becomes, what really happened? were there settlements with the women? and if so, what did they allege? what did they find? frequently, in the question s, e have had a he said/she said. all we have heard so far, is is he said. i think the national restaurant association or the cain or both, owe peoplepeople a clearer explanation, before the air air is really clear. >> he is on top of all of the polls right now in iowa. the des moines register poll tp. he is statistically even. though slightly ahead 23-22. in national polls, he is doing really, really well. i guess this comes with the territory. how much damage potentially o could these allegations prove to be for his campaign? >> it is hard to say right now.
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i mean, i think if he puts -- i think if he does clear the air, it can fade away. there could be very little to it. if he resists, i think he is going to be under intensifying scrutiny about his whole record and people are going to ask about how well he is running his campaign and other questions. when you get into this game, he may not -- i imagine there are people around him who never thought he would get this far. once you get this far and you're ahead, as you know, you come under intense spotlight and they look under every rock. aep you just got to be prepared for it. and you know, if they went in ten days ago, it took this long to get a response, it is clear they weren't quite prepared. >> not just the news media investigating every detail of the presidential candidates. very off then even more important, opposition research over these other campaigns, that are investigating the arrivals every step of the way, and that is something that they all have to live with as well.
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>> they do. >> and sometimes, sometimes wolf, i think that you know, we are too invasive of people's private lives. but if someone is president of a national association, and there are formal charges or accusations that come forward and then financial settlements, that rises the level that people need to know a little more about the candidate than they do right now. >> i suspect they will learn more in days to come. >> thanks very much. >> president obama's team isn't waiting to see who actually become the republican presidential nominee. some of his top aides are focusing their attacks on one republican that would be mitt romney. let's bring in our chief white house correspondent. what is going on here? >> there seems to be a republican contest still going on. but in obama world there is one candidate it watch. as you point out, it is mitt romney. >> you are now leading, mr. cain pb in two polls this week. >> romney is tied for the top spot with businessman herman
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cain. >> herman cain and romney way ahead of the field. >> if you look at the plus or minus, five points -- >> while political watchers measure who is up and down in a tight republican horse race, the obama reelection team is already focusing its firepower on mitt romney. top white house advisor david plouffe on meet the press. >> you get the sense that if he thought it was go to say the sky was green and grass is blue to win an election, he would say it. >> ouch. and we haven't gotten to iowa yet. convinced voters don't know much about romney and he is slated to become the nominee, team obama is defining him while he is still distracted with primaries. a biting two-pronged attack. one, they will argue sea flip-flopper. prs secretary jay carney. >> it is a question to where he was, and where he will be on any
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given issue. >> david axle rod. >> if you are willing to change positions on fundamental issues of principle, how can we know what you would do as president. >> two, they say he is a creature of wall street who won't help the middle class. in statement, obama campaign press secretary said, rather than restoring economic security for the middle class, mitt romney thinks we should join a race to the bottom by promoting outsourcing, loop holes and risky financial deals. the president himself made the case after a republican debate in which mitt romney suggested he wouldn't support an extension of the payroll tax cut. >> that is exactly what one of leading republican presidential campaigns suggested we do. allow taxes to rise by up to a thousand dollars next year for struggling middle class families. >> wolf, the romney campaign is not letting these attacks go unanswered. campaign spokeswoman andrea says
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in statement to us, quote, president obama and his allies signal they will run a campaign of personal destruction to quote, kill, mitt romney because they are intimidated by his candidacy. americans know that mitt romney is a fiscally responsible businessman who will put in place pro growth policies that will undo the damage caused by the failed obama presidency. an early peak at a campaign, wolf, that could be very harsh indeed. >> if you think harsh, it certainly could be harsh. take a look at what mitt romney is saying about the president of the united states. in his speech, he can going after him big time. that's what presidential elections are all about. they are going after each other. but i do know and i write about this on my blog today that democrats are deeply worried that if mitt romney is the republican nominee, you could get a lost independent voters and some of the swing states and make a difference. that's why they are going after
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him and trying to soften him up right now. thanks very much. the european debt crisis takes a huge toll on one of wall street's biggest players. is it a sign of what is to come for other u.s. financial companies? plus, worse loss for life in nato in a decade coming up, growing concerns about who is responsible. so who ordered the cereal that can help lower cholesterol
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europe's debt crisis is causing big trouble for a financial company right here in the united states. we are talking about mf fwloeb al, fired for bankruptcy today. leaving behind more than $2 billion in debt. the firm has been run by the former new jersey governor who himself used to run goldman sachs. things bring in our krp anchor er erin burnett. >> he is smart guy and this is what we saw during the financial crisis. people taking on too much risk. the firm's name is mf global. we all know john corzine, senator from new jersey and governor and ceo of goldman sachs. that is where he got his money
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and where you would think, learned about risk. they do a lot of trading, wolf. they took on about 6.3 billion in bets on european debt and they did that with some much the firm's own capital. now that bets have gone wrong, the firm doesn't have enough money. that's why you see the chapter 11 filing and the firm going bankrupt. but broader lesson, this is why they are trying to have banks keep more money on hand for a rainy day. mf global, not big enough to cause problems the system. but we have tried to have keep this from happening, with goldman sachs and j.p. morgan, now that they are bigger than ever, we have to bail them out. >> a senator from new jersey, governor from new jersey, now gone back after losing his bid for governor of new jersey. when i firms files for bankruptcy like that, i assume it is not personal.
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he still walks away with some cash. he is not broke or anything like that. >> definitely not. obviously he spent some of his considerable, several hundred million in fortune, on campaigns for governor and senator. he got out of goldman, in terms of selling stocks. so he did good. for mf global, while he had stock options in mf global, publicly traded, they were 11 million when they were graded but now that price of the stock is zero, they are worth nothing. he won't get anything from that but his salary is $1.5 million. he got a 1.25 million cash bonus. it is unclear whether there are claw back where he would have to return that money but that is what he was paid for all of last year. which is the latest data i was able to find for you. >> give us a little preview of what is coming up on erin burnett out front later tonight. >> have you been talking so much about herman cain, it is fs
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nated what happened. as you were talking with david gergen, what is the public's right to know. will talk about a republican rain maker and king maker who had positive things to say about herman cain. we will hear what haley barber has to say about herman cain. he hasn't endorsed anyone yet. as you know, when he was head of the republican gov floor's association, he doubled their funding. it is important what he has it say, and we are looking forward that t.o. that. >> 7 p.m. eastern here on cnn. >> thanks, wolf. >> thank you. see you tomorrow, and tonight as well. let's go to kabul, in what is called the worst loss of life for nato in a decade of war. 17 people killed in a suicide blast targeting a nato convoy. among them, nine americans. let's bring in nick with the latest. nick, you want to the site of this bombing, this explosion. it was massive. tell our viewers what you saw.
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>> it was quite remarkable. not just the size of the kraser but the fact that this bomb bought with a huge amount of explosive blue tones of armored bus, huge vehicle used to transport nato personnel around the capital, blew it right across the road to the other side of the highway over the reservation. so quite remarkable. nato officials today asking themselves whether something as powerful as this was simply an opportunist roaming around the capitol. something i consider unlikely. or more sophisticated preplanned. wolf? >> afghan officials suspect the work of what is called the hika ni network, is that right? >> according to us today, the afghan ministry said they believe the preliminary evidence suggests the network were involved, that's absolutely vital. they are considered by u.s. officials to have support. right in the heart of the capitol against the
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intercontinental hotel and against the american embassy. they are deeply devicive. the u.s. increasingly saying if pakistan doesn't crack down itself, they will have to take tougher measures themselves. there are some arguing that this increased emphasis buyes a little bit of breathing room for peace talks, if there are to be any with the rest of the insurgency. the taliban are still here, still fighting and the more that they become public enemy number one, if you were, the more chance there is for them to talk peace to the taliban. far away, peace talks. >> nick paton walsh, nick, thank you. now featured in brand new videos, guess who released them? fbi. stand by to see anna chapman working during her hay day as a spy. here in united states. >> jack cafferty asking, does the weak recovery feel more like
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recession to you? stand by. so you're seriously proposing we change our name to sun life valley. do we still get to go skiing? sooner or later, you'll know our name. sun life financial.
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let's get right back to jack cafferty for the cafferty file. >> does the weak recovery feel more like a recession to you? brian in illinois says to me, it
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feels as if we may be on the cusp of great depression two, if we aren't already there. the visibility of the occupy movement is not enough to prove that so many are struggling even though much has been swept under the rug fwr a long time now. the theme of today's holiday says it all. very riley writes, i think it's the new normal for the country. it's not going to be good for many, many people. kristen on facebook, yes, it feels like a recession, but it doesn't feel like a new one. the old one never ended. my house is so under water we're drowning. my husband hasn't worked in a year. recession is an understatement. sherry from indiana, no, jack, it does not feel more like a recession to me. it feels more like a depression. long-term successful businesses are failing at horrendous rates here. people here have no money for anything other than necessities and many don't even have that. meanwhile, inflation and food prices is getting worse every day. it's a disaster, period.
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richard writes from pennsylvania, what recovery, jack, unemployment still high. the government is throwing money away on sol linda, beacon and a car manufacturer in finland. food prices are going through the roof and there are continuous street demonstrations. how do any of these facts translate into any kind of recovery? doug in massachusetts writes the economy is running on fumes, borrowed fumes, illusion their fumes. you want to read more on this, go to my blog, or through our post on "the situation room's" facebook page. >> mary snow is monitoring some of the other top stories. mary t arab league is proposing a plan to try to end the government crackdown in syria. what's going on? >> wolf, syria is due to respond today to an arab legal proposal calling on an end to violence against protesters. it calls on syria to remove tanks and military vehicles from the streets and release
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political prisoners. opposition activists say syrian forces killed 28 people over the weekend. two suspected militants were killed today in a suspected u.s. drone strike in pakistan. intelligence officials tell cnn the drone fired two missiles on a vehicle in a tribal region of north was sear stan. today's strike is the 59th this year. nearly 50 chemical and defense companies were victims of a yord nated cyber attack according to security firm symantec. computers of at least 48 companies were infested with malicious software called pie son ivy. the attack took place july through september and has been traced to a man in china. most of the companies hacked were based in the u.s. a new album from amy winehouse is set to be released in december. the announcement came today from her record label. the posthumous album will contain new and reworked songs winehouse recorded between 2002
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and 2008. the singer was found dead in her london apartment in july, a coroner ruled last week her death was the result of accidental alcohol poisoning. wolf? >> sad story indeed. thanks very much, mary, for that. coming up, remember that sexy russian spy, anna chapman? we have new glimpse of her courtesy of the fbi, her secret meetings while she was working under cover here in the united states. stand by for that. [ mom ] scooter? your father loves your new progresso rich & hearty steak burger soup. [ dad ] i love this new soup. it's his two favorite things in one... burgers and soup. did you hear him honey? burgers and soup. love you. they're cute. [ male announcer ] progresso. you gotta taste this soup.
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with maximum-strength medicine and no embarrassing odor. break the grip of pain with aspercreme. imagine you're a fly on the wall watching within of the most shocking spy cases in recent years play out. we're now getting remarkable images, a window into the secret world of anna chapman and other russian agentses, living, working here in the united states, pretending they were doing other stuff. they were on the prowl for intelligence, all this unfolding for more than a decade. our foreign affairs correspondent jill doherty is joining us with new videos that have just been released by the fbi. jill, this is pretty amazing, especially that the fbi is releasing it? >> it is really wolf. it's fascinating. you should take a look at it. it's really the trade craft of spies, the real thing, captured
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on videotape. just in time for halloween, the fbi releases a treasure trove of videos, photos and heavy edited documents. a coincidence, wu it's an undercover peek of how a russian spy ring collected and passed on information, how the fbi trailed them and finally cracked the operation. in one video from january 2010 anna chapman, the red-headed bombshell who later went on to fame in moscow as a tv host sits in a new york coffee host wearing designer sunglasses, unknowingly talking with an undercover fbi agent about problems with her laptop that she uses to communicate with russian officials. you're ready for the next step, okay he asks? okay she says. this is not laptop to laptop, this is person to person the agent says.
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in another video the classic spy technique, a brush pass as another spy trades off a bag full of cash with a russian official as they pass in a train station. the fbi was forced to release the material recorded over the decade the fbi had the ten russians under surveillance as part of a freedom of information act request. and it looks just like a spy movie, including one russian digging up a package of money from what in spy lingo is called a dead drop. this spy ring is over, but the fbi says it's not the end of the story. >> the u.s. remains the target of most of the world's spying. and again, as long as we have policy information, technology and research that the rest of the world wants and as long as foreign intel services want to gain a strategic advantage against us, wheel continue to be the target of that kind of spying. >> remember, wolf, last year anna chapman and her colleagues were returned to russia in a spy swap, but their techniques live
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on. >> you know, the intelligence community, jill -- you know this, you've covered the intelligence community, the national security world for a long time as i have. what they're really worried about is undermining what they call sources and methods n. this particular case, some sec neeks by releasing this video under the freedom of information act. are they concerned they're sharing with the rest of the world including america's enemies how the fbi engages in counterespionage here in united states? >> i asked that very question. what they released they feel they could release. it doesn't really reveal anything that they wouldn't want revealed. i tell you, when i talked to the fbi agent, he said granted you've got some of the traditional things like the dead drop and the passing by somebody and switching bags, et cetera, but anna, for example, anna chapman and some of the others were using some pretty sophisticated things. she was using a mac. when she was in that coffee shop previously and